EV Discounts Rebound to 10.4% in February 2026, with Price Cuts Hitting 13.5%

On March 8, Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), stated that since the beginning of 2025, promotional activities in the passenger vehicle market have become more rational, with market order significantly improved. Affected by the reinstatement of purchase tax incentives for new energy vehicles (NEVs), 17 models and 6 models reduced prices in January and February 2026, respectively. In February, the average price of NEVs that underwent price cuts was RMB 354,000, with an average reduction of RMB 48,000—representing a 13.5% decline. For fuel-powered vehicles, the average pre-discount price was RMB 371,000, with an average reduction of RMB 46,000, or a 12.5% drop. Across the entire passenger vehicle market, the average price reduction stood at RMB 47,000, equivalent to a 13.1% decline. Although some brands lowered their promotional intensity by adjusting official guidance prices, NEV promotions in February rebounded to a relatively high level of 10.4%, up slightly by 0.3 percentage points month-over-month. In contrast, promotions for fuel-powered vehicles declined to 23.5%, down marginally by 0.2 percentage points from the previous month.